Using the PEG framework with analyst consensus forward EPS growth of 25.0% plus 3.5% dividend yield, Principal Financial Group, Inc. has a fair value of $234.94 based on NTM EPS (FY2026) of $9.40. The current PEG ratio is 0.30.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
Growth above 25% is capped — hypergrowth may not be sustainable long-term.
| EPS Growth RateForward | 28.4% |
| Dividend Yield | +3.5% |
| Adjusted Growth (clamped 8–25%)Clamped | 25.0% |
| Fair P/E | 25.0x |
| NTM EPS (FY2026) | $9.40 |
| Fair Value | $234.94 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $5.25 | — | — |
| FY2026E | $9.40 | +79.0% | 4 |
| FY2027E | $10.27 | +9.3% | 4 |
| FY2028E | $11.11 | +8.1% | 3 |
3Y Forward EPS CAGR: 28.4%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $1.6B | $5.79 | — |
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.
| FY2022 | $4.8B | $18.63 | +221.8% |
| FY2023 | $623.2M | $2.55 | -86.3% |
| FY2024 | $1.6B | $6.68 | +162.0% |
| FY2025 | $1.2B | $5.25 | -21.4% |
4Y Historical EPS CAGR: -2.4%